I bought a condo in 2005, converted it 12 years later to a rental property in 2017, and sold it in 2024. Is the "Business Portion" of the asset sale 100%, or is it the % of time it was a rental from 2017-2024? If it's the latter, it would be a rental for 7 of the 19 years of ownership which is 36.8% business portion.
More data:
11/2005 - condo purchased for 304k
1/2017 - condo rented out - I could have sold at that point in time for around 220k (loss due to housing crash in 2008)
8/2024 - tenant moved out; unit vacant until sale
12/2024 - condo sold for 265k
Condo was sold for a loss compared to what I initially paid. But it seems like turbotax is using the 220k estimate from 2017 when it converted to a rental to calculate a gain on my sale. I'm hoping I can accurately claim the 36.8% business portion as taking a loss on the sale of the property and then paying taxes on a "gain" is brutal.
